Nigel Jenkinson from BoE has spoken on some issues and challenges in meeting five high-level objectives that should influence a new framework to contain system-wide liquidity risks. He discussed objectives covering:  

  • encouraging individual banks to manage liquidity risk prudently to be robust to firm-specific and market-wide stresses;  
  • regulation disincentivising banks from increasing liquidity risk;  
  • regulation guarding against crystallisation of system-wide liquidity risk;  
  • consistent global application of standards; and  
  • underpinning incentives for banks to manage liquidity risk prudently within the design and operation of central bank facilities.